Norwegian Cruise Line suffer losses in first quarter

It was reported that Norwegian Cruise Line suffered net loss of $1.9 billion for the first three months of financial 2020, down from a profit of $118 million considering the same period last year.

While, revenue for the period decreased 11.2 per cent to $1.2 billion as compared to $1.4 billion in 2019.

The capacity fell by 12.6 per cent as cruise lines around the world came to a standstill in March but the cancellations were partially offset by the addition of Norwegian Encore and Seven Seas Splendour to the fleet.

Frank Del Rio, chief executive officer of Norwegian Cruise Line Holdings, said that the company was positioned to weather the storm caused by Covid-19. They have taken decisive action to significantly strengthen their financial position in response to the Covid-19 global pandemic, including their highly successful and oversubscribed $2.4 billion gross simultaneous quad-tranche capital raise announced last week.

They believe that the capital raise coupled with other ongoing liquidity-enhancing initiatives, makes them well-positioned to weather an unlikely scenario of over 18 months of suspended voyages.

Their guests continue to demonstrate their desire for cruise vacations, and they continue to experience demand for voyages further in the future across our three brands.

They are preparing to resume sailings and are working around the clock alongside United States and global public health agencies and governments to develop and implement the next level of enhanced cruise health and safety standards.

Before July 24th no vessels are expected to sail but Del Rio was hopeful the line could see all its ships back at sea within five to six months.

Norwegian Cruise Line Holdings has 28 ships, which are spread across its three brands: flagship Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises.

Norwegian is expecting to make a loss for the second quarter, ending June 30th, and the year ending December 31st, but was unable to more specific given the uncertainty around the ongoing coronavirus pandemic.